Q1FY16 net soars 68% from sales surge at Mafatlal Inds

17 Aug '15

3 min read

Driven by a massive surge in net sales, net profit soared 68 per cent year over year at textile major Mafatlal Industries for the three months to June 30, 2015.

In a BSE filing, Mafatlal Industries said its net profit drove up 68 per cent to Rs 6.50 crore in the first quarter of fiscal 2016 as against Rs 3.87 crore in the prior fiscal first quarter.

Consequently, earnings per share also climbed to Rs 4.68 in the three months to June 30, 2015 from Rs 2.78 in the first quarter of fiscal 2015.

Standalone sales for the reporting period also surged to Rs 365.01 crore, up a steep 61.31 per cent from Rs 226.21 crore in the previous fiscal's first quarter.

Higher sales also resulted in expenses for the quarter under review propelling to Rs 364.56 crore, an increase of 55 per cent to Rs 235.50 from a fiscal ago period.

Expenses were mainly drive by a 150 per cent hike in purchases of stock-in-trade which saw it growing to Rs 188.27 crore compared to Rs 75.14 crore.

In the first quarter of current fiscal, cost of materials consumed rose 11.31 per cent to Rs 70.94 crore and other expenditure went up 18.80 per cent to Rs 73.73 crore, both growing from a fiscal ago quarter.

The Hrishikesh Mafatlal led company was able to post a turnaround in its profit from operations before other income and finance costs at Rs 7.49 crore as against a loss of Rs 1.98 crore in the first quarter of past fiscal.

However, other income, which constitutes profit on sales of non-current investments dived down steeply in the reporting period to Rs 3.76 crore compared to Rs 9.49 crore in the first quarter of earlier fiscal.

Despite which, profit from ordinary activities before finance costs and exceptional items in the first fiscal of 2016 expanded 50 per cent from the first quarter of earlier fiscal to Rs 11.25 crore.

Finance costs at Mafatlal Industries reduced to Rs 3.64 crore in the period under review as against Rs 3.94 crore, down 7.61 per cent.

Profit from ordinary activities after finance costs more than doubled to Rs 7.60 crore, up a massive 113 per cent from Rs 3.57 crore.

Fibre2Fashion News Desk – India

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